lasg 2009 budget

8/8/2019 LASG 2009 Budget

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PRESENTATION OF THE LAGOS STATE 2009 BUDGET BY HIS

EXCELLENCY THE EXECUTIVE GOVERNOR OF LAGOS STATE,

BARRISTER BABATUNDE RAJI FASHOLA

Mr. Speaker,Honourable Members of the Lagos State House of Assembly,It is a great honour and privilege for me to present the Y2009 budget

estimates to this Honorable House. In doing so, I sincerely thank members of

the Lagos State House of Assembly for working constructively with the

executive to achieve the objectives of our Administration. We have clearly

articulated our vision and have been very focused in the pursuit of our goals.

Our objective is to transform Lagos into Africas model Mega city; to build a

world class city state that is clean, secure, livable, functions efficiently and

enables the people to express their potentials.

Over the last 500 days since our assumption of office, we have worked

tirelessly to deliver on our mandate through the rigorous implementation of our

Ten Point Agenda. The budget is one principal instrument for achieving our

objectives and our administration takes the budgetary process very seriously.

The emphasis of the Y2008 budget on capital expenditure reflects our

determination to overhaul our infrastructure and create the requisite

framework for accelerated and sustainable development.

We have run government like a public corporation and closely monitored the

implementation of the budget by holding a fortnightly revenue meeting from

January to date and a quarterly review meeting of performance and enforced

budgetary compliance. As at the end of the first quarter, the overall

performance of our Budget was 60%; at the second quarter it was 70.65%;

while at the third quarter it was 71.145. The trend of our Budget performance

has been progressively upward and we are optimistic to close the year with a

performance level of at least 80%.


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awarded the design contract for the construction of the Admiralty-Alexander

(Lekki-Ikoyi) link bridge.Equally under construction are the dualisation of Mobil Road and Wilmer

Crescent in Apapa; construction of a road network in Epe; construction of

Ijede-Egbin Road and Rotimi Odusanya Street in Ikorodu; construction of

Alasia- Aiyetoro Road, Ijanikun; construction of Ikosi Road, Iba; as well as

Ogunoiki, Sule Abore, Oodu Odogunyan-Odonla, and Uniyu roads all in Eti

Osa.In line with our express commitment, we have commenced work towards the

transformation of the Lagos- Badagry Expressway as a ten-lane modern

international high way. The design work is being completed. We are building

roads and bridges in Ajegunle to connect communities that have for many

years have been separated, while work has started on OPeloyeru and other

roads in Orile Iganmu.

Our roads are of the highest quality. Not only are they equipped with service

ducts, our drains are no longer bricks laid but reinforced concrete to ensure

the durability of the roads. We wish to salute the various organizations who

partner with the Lagos State Infrastructure Maintenance and Regulatory

Agency (LASMIRA) to ensure that in case of inevitability of Tar-cut they have

a plan for rehabilitation of the affected road, and urge others to emulate them

so that we can get the best value for our roads. TransportationAs an administration, we are committed to the intermodal mass transit option.

Today, the take off of the Bus Rapid Transit (BRT) scheme is a success story.

In response to the acceptance of the idea by Lagosians, we have moved toincrease the fleet. The number of high capacity BRT buses has been

increased from 126 to 246 with a capacity to transport 180,000 persons daily.

Plans are afoot for the extension of the BRT to other parts of the state. Part of

the 200 new buses, which we ordered have started arriving at the ports to

further increase capacity.


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During the year, contracts were awarded for the rehabilitation and

construction of jetties, dredging of the waterways and other infrastructure in

readiness for the implementation of efficient private sector operated ferry

services. They include the construction of standard terminals at Ikorodu,

Badore and Osborne as well as the dredging and channelization of thefollowing ferry Routes:

(i) Ikorodu Badore via Oreta, Baiyeku and Ijede;(ii) Ikorodu Osborne;(iii) Badore Lekki;

(iv) Oke Afa Mile 2;(v) Tolu/Ajegunle PortNovo Creek Liverpool and(vii) Planned repairs of Epeme and Iya Afin jetties

We are also working with the Federal Government with a view to taking over

some of their disused jetties for rehabilitation and deployment. Lagos State

indeed has an immense potential in this regard. We have accordingly

established the Lagos State Waterways Authority (LASWA) to oversee

government programmes in this area and regulate operators.

The third leg of our mass transit is the light rail option. With the design of the

designated corridors nearly completed, we will soon be able to commence

construction of the first route. Very soon I will be leading a delegation to Dubai

and London on a road show to market operators to invest in the provision of

the coaches that will service the project. The World Bank has pledged its

commitment and support for the actualization of the project. The designatedroutes for immediate implementation are the Agbado-Iddo Marina and

Ojo/Okokomaiko to Marina. An additional five routes have been identified for

future construction, namely:(i) Marina Lekki


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(ii) Ota/MMA Iddo(iii) Redemption Camp Ojo

(iv) Redemption Camp Marina(v) Mile 2 Marina

It is our firm determination to actualize the vision of an efficient modern multi-

modal transport system within the shortest possible time.

Traffic ManagementThe effective management of traffic during the recent two-month partial

closure of the Third Mainland Bridge underscores our improved capacity in

this regard. I thank all the Federal Government agencies that worked closely

with us to manage traffic during the repair and rehabilitation work on the

critical bridge. I am also grateful for the patience and understanding of

Lagosians during the difficult period and even now as we have partially

diverted traffic on a portion of the Apapa-Oshodi Expressway for the on-going

construction of the Okota-Itire link bridge. As I promised you earlier in the

year, the construction of this critical link bridge, which will effectively connect

seven local governments, is now under way. As a government we will not

relent in our efforts to ensure that traffic moves as seamlessly as possible on

our roads.

We have established the Drivers Institute to ensure the certification and re-

orientation of Drivers of private and public transport vehicles in the state. This

will surely significantly improve our road culture. Four of the five World ClassDrivers Education Institutes equipped with Eye Testing equipment, simulators

and Biometric equipment have been completed.We have increased the operational zones of the Lagos State Traffic

Management Authority (LASTMA) from 14 to 20 while also providing


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additional logistic support such as 50 High powered Motto Guzzi bikes, 16

operational buses, 2 Heavy duty mobile car crushers for abandoned vehicles,

five motor car tow trucks and 26 medium tow trucks. This is in addition to

upgrading its communication infrastructure.Road infrastructure also feature prominently in our programmes as we

undertook the provision of 21 Bus laybys, medium Barriers, Crash prevention

and Guidance facilities, Traffic lights, junction improvement, Road marks and

signage and road studs across the state. We have also undertaken road

improvement in such areas as Odo Iyaalaro underpass, descent of Anthony

Bridge, expansion of Town Planning Way, Mobolaji Bank Anthony Way,

additional lane at Otedola underpass, improvement of Old toll gate road and

the provision of a U-turn to link Ahmadu Bello Way through the Army OfficersMess, Onikan, opposite the Muson Centre to relieve the gridlock around

Tafawa Balewa Square through to Marina.

Continuous reviews have shown that break downs constitute a very high

percentage of the daily traffic congestions. I therefore call on all road users to

complement our efforts by keeping their vehicles in road worthy conditions

through periodic maintenance at all times even as we are finalizing plans to

review and re-invigorate the MOT vehicle testing scheme.REGULATION OF OPERATION OF COMMERCIAL MOTORCYCLES

(OKADA)

It has become imperative to enforce existing Laws and Regulations guiding

the operation of motorcycles as commercial transportation popularly known

as Okada. We recognize the service that these vehicles were intended to

provide, including mobility and easy transfer from one place to another.

However, it is necessary to alert the citizenry of the obvious exploitation of

these operators and the substantial dangers inherent in engaging the services

of uncertified, unregulated and in many instances unknown, transient riders

who often have little or no verifiable connection with Lagos State or the locality

within which they operate. They ride with multiple passengers and cargo and

violate traffic laws at will.


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From all reports it is evident that Okadas provide effective transport for

criminal gangs to perpetrate offences such as armed robbery, stealing as well

as harassment and intimidation of innocent residents. They also present

serious challenges for surveillance by law enforcement agencies in a state

with our size and population. Indeed our hospitals testify to the needless lossof human life, grave and sometimes permanent injuries sustained from

accidents caused by lawless motorcycle riders.In the interest of public safety and security, this menace cannot be allowed to

continue unabated. The present practice of impunity by Okada riders where a

flagrant disregard of existing road traffic laws and regulations is observed will

now be met with strict enforcement. The appropriate agencies will continue to

enlighten the public on permissible and lawful conduct for law abiding citizens.However, the immediate and continuing enforcement of the law through the

criminal justice system will henceforth be robust, firm, sustained and

unrelenting. We will not allow people to do business at the expense of other

peoples lives, safety and comfort.

For the avoidance of doubt, the provisions of the Road Traffic Law, Lagos

State Traffic Management Authority Law, the Bus Rapid Transit Lite

Regulation and the Motor Vehicle Registration and Administration Authority

Law all regulate the operation of Okada in Lagos State. In keeping with my

constitutional duties, particularly section 5 (2) (b) of the constitution, I have

given Executive Orders restricting the movement of motorcycles during certain

hours in specified areas, namely Ikeja, Ikoyi and Victoria Island. This will be

strictly and rigorously enforced.I have directed all relevant government agencies including the police,

LASTMA, the Special Traffic Mayors, KAI, Monitoring Team on Special

Offences, the Ministry of Transportation and the Ministry of Justice to ensure

due enforcement of all Laws and Regulations guiding the operation of Okada

in Lagos State. We solicit the support of members of the public to ensure that

the menace constituted by lawless motorcycle riders is brought to an end.


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The Lagos State Waste Management Authority (LAWMA) during the year

acquired 50 new operational vehicles while another batch of 50 vehicles will

be delivered to the agency shortly. 40 new roll-on-roll- off trucks have also

been acquired by the agency. This has improved the capacity of the

organization to manage public waste. During this period, we undertook theupgrading of the Olusosun land fill site at Ikeja, procured 240 waste collection

trucks and three giant landfill compactors and introduced Dino bins in 2000

locations across the state. We also commenced the construction and

equipping of 3 out of the planned ten transfer loading stations and these are

at Simsin, Ogombo and Yaba. This is in addition to the on-going development

of three land-fills at Ibafo, Ikorodu and Badagry. Again, we approved the

supply of 1,986 units of 1,100-litre galvanized steel bins on wheels to all the

schools in the state and we have gainfully employed thousands of our men

and women and young people who work day and night to sweep and clean

our streets. The progress that we have made in making Lagos cleaner

demonstrates what can be achieved. We want to keep people employed to

give us a clean city and household can help us by promptly paying their refuse

collection bills. There is no secret in a clean and healthy State. It requires a

clear plan which we have, it requires men and women to do the job, whom we

have found, it requires funding to operate it, which we asked you to give us.FLOOD CONTROLAs a coastal city, we face the challenge of managing flood especially when

many people continue to misuse the various canals as waste disposal bins.

As a palliative to the incessant flooding we have dedicated ourselves to the

construction, dredging and cleaning of the Canals and some waterways.

They include:- Construction of Gbagada/Aturase Trapezodial channel;- Construction of Ososa/Ifelodun/Ariobadade collector Drain;- Construction of sheet pile and construction of MacGregor trapezodial

channel;


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- Lining of Oko-Oba Canal;- Dredging of Ologolo Canal;- Maintenance of Brown/Oshodi Canal;- Dredging of Gunness downstream;- Dredging of Chinatown/Lancaster Drainage;- Dredging of Airport Mafoluku/Ajao Estate Channel;- Cleaning of system 2;

- Dredging of NTA Tejuosho to Alaka/Railway compound to Ojo Oniyun toOlaleye and

- Rehabilitation of Oduduwa Collector to mention a few.

We have also embarked on various reclamation projects to ensure Erosion

Control in Omole Phase 1, Ayetoro and Obafemi Awolowo way, Ikorodu to

name a few.BAR BEACH RECLAMATION AND RESTORATIONWith the successful completion of the sea defense wall to stop the ocean

surge along the Bar Beach, work has now commenced on the Eko Atlantic

City project that will transform the area into a major commercial, residential

and business hub in Africa. The project, which was graciously flagged off by

Mr. President in April is slated for completion by 2015 and is envisaged to be

the largest civil works project ever undertaken in Africa. PHYSICAL PLANNING AND SLUM UPGRADING:Last year, we witnessed a series of building collapse and I promised that we

will find an enduring solution. Since I made that promise, we have worked day


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and night, consulting with all stake holders and we are in the final process of

developing an urban development and town planning procedure that will put

an end to building collapse by involving all the stake holders. In the interim,

the tighter controls and very close scrutiny has ensured that this year, more

than before, we reduced drastically the incidence of building collapse in ourstate.

We have approved the immediate implementation of the comprehensive

proposals of the Technical Committee on Planning Regulation and Building

Control, which I inaugurated in June this year. Aside from the Lekki Master

Plan which we have unveiled, work is ongoing on the Master Plans for cities

like Surulere, Apapa, Badagry, Ikorodu and Alimosho among others. We are

undertaking all of these to ensure that our vision of a well planned state ismet.Let me use this opportunity to appeal to all citizens to join our efforts in

beautifying our state by painting their houses regularly. Their efforts in this

regard will assist us enormously. I must also point out that there are a number

of buildings that have outlived their useful structural life. I appeal to the

owners of these buildings to voluntarily bring them down by applying to us and

re-develop them. This will save them from the compulsory acquisition

provisions of Section 74 of the Town Planning Law that empowers the state to

acquire collapsed buildings. Some property owners who fall into this category

have already taken this commendable step.

During my presentation of the Y2008 budget, I stated that our administration

would commence the upgrade of slums mainly through the Lagos

Metropolitan Development and Governance Programme (LMDGP). I am

happy to state that the exercise is up and running. Communities in Agege,

Ajegunle, Amukoko, Badia, Iwaya, Makoko Ilaje Bariga and Ijeshatedo are

already being covered. When they are fully actualized the areas will serve as

growth poles for the Lagos megacity.


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the Local Government Councils, because of financial constraints, found it

difficult to commission fresh valuation exercises. The Land Use Charge was

therefore a new cooperative effort between the State Government and the

Local Government Councils, which saw all property related taxes in Lagos

State consolidated into a single charge. This combined charge offered thetriple benefits of cost efficiency, ease of administration and taxpayer

convenience.However, at the initial stages, the new property valuations gave rise to

assessments which were higher than what people were used to paying.

Following representations made by taxpayer groups, government decided to

grant relief to taxpayers by conceding a substantial reduction of rates, going

as low as 0.0375 for owner occupied residential properties and 0.375 forcommercial properties. Government also pledged that the new rates would

apply for a continuous period of seven years commencing from 1st January

2002.These rates are now due for review and our administration is working with

professional valuers to carry out the exercise. We crave the understanding

and cooperation of Lagosians in the continuing implementation of this and

other taxes as they constitute the only way by which we can achieve the rapid

development that we all wish for.On our part, we shall continue to ensure that prior notices are given to

property owners before the enumeration exercise. Enumerators will refrain

from entering the interior of your buildings and at all times they will wear

clearly identifiable uniforms. We shall also continue to attend promptly to all

complaints, including objections to property valuation or classification. We

hope that you will help us to reduce errors by promptly supplying all the

information required and paying your tax as and when due.

EKO MICRO-FINANCE INITATIVE

As we promised, the Lagos state micro-finance initiative has taken off with the

establishment of the Lagos State Micro-finance Institution (LASMI). In line


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with our objectives, a Memorandum of Understanding was consequently

signed with five micro-finance banks to operate the scheme. The first set of

5000 beneficiaries have been given credit worth N850 million to start new

businesses or expand existing ones. Another set of 4500 graduates of our

vocation and skills acquisition centers were equally empowered through thescheme to set up small scale businesses. We shall continue to systematically

expand the scope of the Eko Micro-Finance Initiative as a platform for lifting

millions of our people out of the cesspit of poverty.JOB CREATION

Job creation is sine qua non to the states poverty reduction policy thrust.

However, there is a limit to the number of jobs that government can directly

create, especially given the current size of the public service.

The focus of our administration is therefore on creating the enabling

environment for sustainable job creation by the private sector as well as the

expansion of the entrepreneurial class. While other bigger economies across

the world are shedding jobs by the hundreds of thousands, we have made

significant achievements in job creation, which are evident in the following

examples:5000 employed as street sweepers;Over 2000 employed by the PSP operators for solid waste management;Over 2000 employed in the massive drainage and canal clearing works;About 3000 directly employed in the various greening and beautification

projects including those employed in the supply chain;About 2000 drivers employed for the BRT operation;About 500 directly engaged in the Agricultural initiatives like Rice-for-Jobs;About 1000 additional staff employed by LASTMA and the Lagos State Fire

Service by end of 2008;


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Over 9000 self-employed persons graduated from the states Skills Acquisition

programmes and received financing under the Lagos State Micro-finance

Initiative;Over 10000 employed directly as construction workers on the various roads,

bridges and housing construction projects;The upsurge in public construction works as well as some new regulations

have created job opportunities for surveyors, architects, valuers, engineers,

accountants and lawyers;Under the states vacation job programme, about 10,000 young people were

employed on our Enterprise Registration and Identification (ENTRIDA)

scheme during the last long vacation period.

Our administration will continue to seize every opportunity to stimulate job

creation on a massive scale, engage idle hands productively and enable more

people gain freedom from the poverty trap.EDUCATIONOur administration has sustained the provision of free education in all public

nursery, primary and secondary schools in Lagos State. In the same vein, we

have continued the comprehensive rehabilitation of our School infrastructure.

This year, we undertook the rehabilitation of 746 classrooms, completed 85

blocks of abandoned classroom projects while also undertaking the

construction of 704 new classrooms at about N5.07billion. Our efforts also

include maintenance intervention works on 712 classrooms, school walls,

roofs and drainages.

We have spent a further N580million on provision of science equipment for

both senior and junior secondary schools. Contracts have also been awarded

to provide 20,800 pupils dual desks, 3150 Teachers desks and 90 principals

furniture. We equally procured and distributed about six million free text books

for children at all levels in our public nursery, primary and secondary schools

while also placing emphasis on training and retraining of our teachers.


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Similarly, we have continued to provide necessary funding to sustain and

maintain our tertiary institutions. However, a very serious problem here is the

massive influx of students into Lagos from all over the country to take

advantage of the very low fees we charge compared to other state-owned

institutions. A good example is the Lagos State University (LASU) where thepressure of numbers, due to the low fees, puts severe strain on available

manpower and facilities with negative implications for the quality of teaching,

research and the environment.We are determined that LASU and the Lagos State University Teaching

Hospital (LASUTH) must rank among the best tertiary institutions anywhere in

the world. This means that they must have world class teaching and research

programs and attract the best teaching faculty across the globe. Since thereare diverse areas of critical need competing for the limited resources available

to government, we face the challenge of coming up with more realistic funding

options for our tertiary institutions that will enable them produce the caliber of

man power that will be respected internationally and positively add value to

our society.

HEALTHIn the health sector, our central policy thrust revolves around expanding and

improving our capacity to provide curative health care at the secondary and

tertiary levels while also emphasizing preventive care through the provision of

primary health care especially for women and children. Apart from sustaining

the provision of free health care for children under five, the aged above 60

and free ante-natal care for women, we have further expanded services of

free screening and treatment for a number of silent killer diseases such as

Tuberculosis, Diabetes, High blood pressure Prostate cancer and Breast

cancer.

In the course of the year we strengthened our emergency services with the

provision of ten new Mobile Intensive Care Units, 57 new ambulances for our

health care centers at the grassroots and took delivery of a new Field

Hospital, which is a standard hospital on wheels that can be deployed during


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emergencies to on the spot medical and surgical services. We have also

strengthened our school health programme with the provision of mobile dental

clinics to offer dental care to school children.Let me also acknowledge the immense contributions of the Eko Club

International, which has undertaken 5 Free Health Missions to the State within

the last one year. Put together about 60,000 persons benefited from the

exercise. We have further strengthened the popular Blindness Prevention

Programme by designating seven secondary healthcare facilities as referral

centers and equipping them with modern facilities. Such programs as the Cleft

Lip/Palate and the Limb Deformity Corrective surgery continue to offer succor

and hope to hundreds of indigent persons.

Mr. Speaker, Honorable Members, today we are making remarkable progress

in changing the face of our various hospitals. From LASUTH to the General

Hospitals in Lagos Island, Amuwo Odofin, Gbagada, Ajeromi, Isolo and

Ikorodu considerable development is being achieved.Among the projects we have started and are nearing completion include the

100 bed maternal and child health complexes within Ikorodu, Mushin,

Surulere, Isolo and Ifako Ijaiye General hospitals; the 50 bed trauma and burn

centre at the Lagos end of the Expressway and the staff clinic at the

Secretariat, Alausa, Ikeja.We have continued the transformation of LASUTH and LASUCOM into

centers of medical excellence. Among projects undertaken at these

institutions are the rehabilitation and equipping of wards, clinics and the 5

suite theatre complex and the provision of a car park, multipurpose sports

complex, Animal House, Dental Centre, the Bola Tinubu 144 bed four storey

ward, pediatrics/family medicine complex at LASUTH and award of contract

for the procurement of thoracic endoscopy and pacemaker implantation

equipment.Having designated the Gbadaga General Hospital as LASUTHs annex, we

have endeavored to upgrade its facilities. We have awarded the construction


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of a three storey, 80-bed trauma and burns centre as well as another three

storey cardiac and renal centre at the Gbagada General Hospital.We understand that a qualitative health care system is not just about drugs,

structures, equipment and ideas. It is also and significantly so about

personnel. We have therefore been engaged in training and re-training of our

medical personnel and this we will intensify as we move forward. We are

determined to make the necessary investment for the emergence of Lagos as

a prime global destination for persons in quest of qualitative medical care. JUSTICEFor us the quality of laws is as important as the processes that facilitate their

implementation. We have therefore continued to strengthen and indeed

expand the scope of our justice sector reforms. Today work is ongoing on the

construction of urban prototype Magistrate Courts at Ajegunle, Ikorodu,

Igbosere, Ikeja, Mushin and Ogba. When fully completed, they will deliver

about 200 new court rooms for our magistrates. New quarters for judges are

also being constructed in Ikoyi.We are currently training 65 court recorders who will provide automation in the

recording of proceedings in these courts. A new magistrates court law andrules of procedure to quicken the judicial process has just been sent to the

Lagos State House of Assembly as an Executive Bill.

We have also fully operationalized the Bill of Sale Registry just as we have

upgraded the Consumer Rights Protection Unit into a full-fledged Agency that

provides for the economic well being of citizens. A Peoples Advisory Centre

has also been established to provide our citizens with access to information

and advice. A well equipped, properly motivated and trust worthy judiciary willcontinue to be the bedrock of democratic governance as well as a robust

investment climate in Lagos State. We have awarded the contract for the

construction of the Lagos Arbitration Centre to provide an alternative forum for

resolution of disputes; especially commercial disputes.


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PENSIONS AND GRATUITIESPensions and Gratuities are a major plank of our staff welfare programmes.

Since the take off of the Pension Reform Law in Y2007, which establishes the

Contributory Pensions Scheme, we have dedicated ourselves to the prompt

and efficient payment of contributions.A few months back the bi-annual verification was done using the Biometric

equipment that was recently acquired by government. I dare say that with the

equipment we have entered the stage of a more effective and stress-free

management of our retirees. Aside from the basic data this has afforded us,

we are now able to undertake the verification of retirees at less than a minute

per person. With the completion of the exercise, we are at the dawn of

commencing the e-payment of pensions.ECONOMIC PLANNINGSince 1999, there has been a major paradigm shift in the process of economic

planning from the era of direct governmental participation in business. Lagos

State has created an effective participatory planning process through

partnership with the private sector in determining the policy directions of the

state. The main vehicle for consummating this partnership is the EhingbetiForum, the fourth edition of which we held early in the year. The gains of that

summit are unquantifiable. You will recall that we brought together service

and solution providers, investors and strategists with proven records across

the world. We are vigorously implementing the 48 resolutions passed at the

summit.

Since accurate data is indispensable for efficient planning, the Central Office

of Statistics has been repositioned as a Statistical Bureau and has been giventhe immediate target of calculating the States GDP. The tentative figure I

understand is ready while we await the full report of its calculation when the

consultants finish their job. I am also happy to report that the Lagos State

Records and Archives Board (LASRAB), the first public information


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warehouse in the state, has taken off with the deployment of its full

complement of staff.Mindful of the need to adopt best practices, we have subscribed to the

Growth Pole Project a DFID/World Bank Investment Climate Programme to

assist the state to address emergent challenges relating to doing business in

Lagos especially in the area of trade facilitation, tax administration, lands

registration and contract enforcement.We urge prompt action by honorable members of this distinguished house on

the Procurement and Fiscal Responsibility bill, which is already before you. Its

passage into law will strengthen transparency, accountability and good

governance even as we finalize plans very soon to unveil the LASEEDS 2

document. Let me also state that the Medium Term Sector Strategies on

which we partnered with the SLGP of DFID has been extended beyond the

pilot Ministries to embrace seven others. Also critical to our planning is the

Medium Term Expenditure Framework (MTEF) as a platform to ensure project

completion within a medium term. This will from the coming year feature more

prominently in our planning process.COMMERCE AND INDUSTRYLagos State has a very large informal sector. The actual size and their

identification has for a long time eluded us making it difficult to plan effectively

for them. We have thus pursued the Enterprise Registration and Identification

programme (ENTRIDA) as a critical exercise that will assist us to ensure a

robust database and also promote the culture of tax payment in the informal

sector. The first edition of the generated information has been published as

the Lagos Business Directory.

We have also commenced an audit of our industrial estates as a first step to

rehabilitating and modernizing them. While a new industrial estate will soon

take off at Imota, the first phase of the N6billion Ultra Modern Auto Market in

Mowo will soon take off, while progress is going on with the construction of

phases one and two of Tejuosho market, Oyingbo market, Iponri market and


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Oluwole market while Jankara market has also been awarded for

reconstruction.

Housing:

During this period, the Ministry of housing constructed 2000 housing units in

seven locations across the state. Apart from direct construction, we are also

utilizing the strategy of Public-Private Partnership to meet the housing needs

of the state. In this respect, 27 Developers have proposed the construction of

20,000 housing units in ten different locations across the state. Under this

arrangement, the government provides the land as equity while private

resources are deployed to construct the estates. Necessary approvals have

been given and work is under way in a number of them.

Government is currently addressing the problem of congestion created by

high population density in the metropolis through the establishment of Satellite

Estates in sub-urban and rural communities such as Agbowa-Ikosi, Ado,

Imota, Epe, Igbogbo, Oke-Eletu and Ibeju. We estimate that these schemes


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will provide at least 20,000 new housing units for different categories of

residents.

Mr. Speaker, Honorable members, it is impossible for me to mention all we

have accomplished in the period under review. Let me however mention that

we have commenced the aerial digital mapping of Lagos State through the

Geographic Information System (GIS). This project, which is currently on-

going, will provide a modern, scientific information data base of the physical

features of Lagos to aid effective planning. We have equally introduced the

pilot phase to herald the full scale use of information technology for the proper

management of records in our schools and public health facilities.Through our rural integration program, we have intervened in over 500

communities with the provision of rural electrification, micro water works, rural

roads and other basic facilities. These include the provision of 314 integrated

development projects in 38 contiguous rural communities.

To improve water supply in the state, we completed five micro-water works at

Iwaya, Ojo, Badia, Oworonsoki, Otto-Awori and Igando. Out of the 15 water

projects that we planned, we have awarded twelve and I am satisfied andpleased to report that that they are making expected progress and each of

them which will deliver two million gallons of water daily will start reaching

completion, I am told, from December 2008 through to January 2009.As our local Government and Local Council Development Chairmen resume

work, let me report that the N20 billion local government intervention fund

approved in Y2008 budget has been faithfully implemented in various local

governments across the state in road, school, water, drainage, rural electricityand other life changing programs across the state. We expect our Chairmen

to continue from where we have reached so far.

We have continued the aggressive provision of street lights on major roads

while commendable progress was made in tapping the potentials of marine


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agriculture in the state through the implementation of the Marine Agriculture

Development Program (LSMADP). We have also awarded the construction of

the new Agege stadium while the street soccer initiative has taken off in

partnership with the private sector as part of our efforts to re-vitalize sports as

a vehicle of socio-economic integration and development. A central objectivein the implementation of our programs in all sectors is the generation of new

jobs as a poverty alleviation measure.

Review of the Y2008 BudgetWe had appropriately tagged the Budget the Great Leap Budget to reflect the

depth of our vision and the magnitude of our aspiration. The Budget had a

capital to recurrent expenditure ratio of 61:39. Our further reordering of

priorities has further skewed the ratio in favor of capital expenditure. This is a

state in a hurry. Not only must we change the face of the States infrastructure

but we also need to edge off inflation by concentrating on the valuable and

expedient.Mr. Speaker, Honorable, members it is appropriate to now review our current

performance with a view to laying a proper foundation for our future plans. We

recorded an overall Budget performance of over 71.14% as at half year

review. When this is measured on a prorated basis and projected to the end of

the year, a performance level of 75% is achieved.Y2008 Ordinary RevenueThe Total Ordinary Revenue we realized in the third quarter period is

N158.714billion out of the expected cumulative total of N178.074 billion. This

represents 89.13 %. Out of this sum, IGR performed at 80% or N90.875

Billion; Dedicated Revenue performed at N6.872bn (159.48%). Equally the

Federal Transfers performed at 101.06% having collected N 60.967billion of

the anticipated cumulative of N60.327billion.


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Recurrent Expenditure:A sum of N 96.580billion was recorded as recurrent expenditure at the third

quarter period. This represents 80.67%. A further breakdown shows that

Total Personnel Cost recorded N30.393billion while overhead cost amounted

to N39.091Billion. This amount was applied for the overall smooth running of

government. It is especially noteworthy that a significant amount here is

attributable to the increased cost of diesel which is one of the unfavorable

macro-economic variables we had to contend with. We expended N6.028bn

(53.20%) as subvention to parastatals and the sum of N17.444Bn (104.87%)

as public debt charge.

Capital Receipts:Total Actual Capital Receipt as at September 2008, stood at N66.995 billion or

363.61%. In specific terms, the following are noteworthy: Internal loans of

N7.031 billion; Bond Issue of N35 billion; VAT receipts of N24.026 billion and

Capital contributions amounted to N7.226billion.Capital ExpenditureThis Honorable house will recall that our emphasis had been to deliver

immediate and fundamental developmental programmes which necessitated

the extensive commitment to this segment of expenditure. We believe now, as

we did then, that our challenge is to deliver on infrastructure. Accordingly, our

profile here shows a planned expenditure of N182.831Bn out of which

N115.263 (63.04%) was actually expended in the nine month period. The core

capital segment recorded N108.572 billion while other areas like prime land

and others show N3.279bn while Special Expenditure was N3.412billion.

Proposed Y2009 Budget


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Mr. Speaker, Honorable members it is with a sense of duty and absolute

commitment to the transformation of Lagos State into a preferred destination

of best practices and world class commercial centre that I present the Y2009

Budget tagged the Budget of Accelerated Growth. We have carefully planned

this Budget not only to sustain the great leap of last year but even acceleratethe tempo of infrastructural development of the state. This is critical to ensure

the furtherance and realization of our Policy thrust of POVERTY

ERADICATION AND SUSTAINABLE ECONOMIC GROWTH THROUGH

INFRASTRUCTURE RENEWAL AND DEVELOPMENT AND TO ENSURE

FISCAL RESPONSIBILTY.

The BUDGET OF ACCELERATED GROWTH proposed and presented to

this Honorable House has a size of N 405 Billion.

Budget FocusI am proud to report that through the faithful and diligent implementation of the

Y2008 budget of Great Leap, Lagos has taken a great leap and we are

determined that this oncoming year will move Lagos further along the path of

sustainable development. We will rededicate ourselves to roads and

transportation infrastructure; environmental renewal and upgrading;

infrastructure development; human capital development (health, education);

expansion of water supply; public service reforms; capacity building for

informal sector growth; poverty eradication; enhanced revenue generation;

promotion of collaborative efforts with the private sector and the maintenance

of public security and order.

Core Programmes

Having articulated our various planning frameworks such as the TPA and

LASEEDS as critical variables to fast track the Millennium Development Goals

and growth, the following will receive our attention in Y2009. They are


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Infrastructure development roads, bridges,

Upgrading and maintenance of existing roads, bridgesImplementation of integrated mass transit programmeComprehensive emergency managementFlood control, greening, and beautification programmeSystematic physical planning for sustainable developmentImproved solid waste management system through development of sanitary

land-fill sites and transfer loading stations.Sustaining security initiatives, (law, order, and justice sector reform)Construction and rehabilitation of schools including laboratories and librariesTeachers welfare enhancementCommunity based vocational education

Improved access free and quality healthcare

Affordable mass housing schemesstate-sponsored home ownership mortgage schemeEmpowerment of farmers/fishermen for food production and processingExpansion/construction of new micro-water schemesTourism development, social and youth empowerment through the renewal of

sports and recreational facilitiesFacilitation of liberalized micro-finance schemeIntegrated rural development


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TOTAL ORDINARY REVENUE: N288.963bn;

The budget projects an Internally Generated Revenue of N208.791bn while

other dedicated Revenue is estimated at N4.172bn. Federal Transfers

amounts to N57bn and Extraordinary Revenue is N19bn. There has been a

review of the accruals from the Statutory Allocation and VAT in line with the

downward review of the Budget benchmark to $45.00

RECURRENT EXPENDITURE;We propose a recurrent expenditure of N159.284bn. This is composed of:

- Total Personnel Cost - N54.33bn- Total Overhead Cost - N104.295bn which devolves as follows:

Subventions - N17bnOverhead Cost - N80.051bnTransfer to other funds N72 million and

Public Debt Charge of N3.000bnCAPITAL RECEIPTS

This is estimated at N42.202bn made up of the following sub heads:Other Capital Receipts- N37.580 bn;

Matching Grants- N4.122 bn and

Investment Income- N500million.CAPITAL EXPENDITUREEconomic sector N109.155bn (44.4%)Social sector - N43.944bn (17.88%)


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Environment - N45.734bn (18.6%)Administration N46.881bn (19.07%)

CONCLUSIONWe implemented the Y2008 budget within the context of very unfavorable

macro-economic variables. These include persistent inadequate power

supply, the attendant 2.1% drop in industrial production over the

corresponding period in 2007 and a double digit inflation rate of 12%

according to the CBN. I must however note with satisfaction the supportive

disposition of the Federal Government, particularly the presidency, toprogress and development in Lagos State.

The nation recorded marked increases in oil revenues occasioned by

unprecedented surge in oil price spurred partly by disruptions to oil production

in the Niger Delta region. Yet, according to the Human Development Index,

Nigeria was placed 158th of 177 nations and remained classified as a low

human development country with HDI value of 0.470. Our challenge is to

translate the huge oil revenues into practical improvements in the lives of our

people as well as do all that is possible to ensure that the global food crisis

and the crisis in world financial markets do not compound the problems of our

economy.

Indeed, as a nation we need more than ever before to put on our thinking

caps and systematically plan our way out of poverty and underdevelopment at

this critical point in world history. The fall in global oil prices will without doubt

affect our revenue earning capacity given our excessive dependency on oil as

the countrys major revenue earner. It is likely that the intensification of the

search for alternative energy sources in the west will limit our future capacity

to earn jumbo revenues from oil. Now therefore is the time to begin to plan for

a future without oil. The global financial and economic melt down will indeed

negatively affect financial flows to Africa in terms of loans, aid, investment and


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explore Public- Private-Partnership strategies in the provision of infrastructure,

social services and the conversion of our challenges to opportunities within

the context of scarce financial resources. I am very grateful to members of the

organized private sector in all ramifications who have responded to our call to

partnership and shown a great and uncommon civic engagement with ourgovernment as I also express appreciation to all the security agencies for their

commitment and support.

I am happy to report that the restructuring of the Lagos State Internal

Revenue Service is yielding the desired result and helping to consolidate and

improve on the internal finances of the state. I thank all those in the formal

and informal sectors who have heeded our call on the need to meet their tax

obligations. We shall continue to campaign for all of us, individuals andcorporate citizens, to pay our taxes voluntarily and promptly to enable

government live up to its responsibilities to the people. On our part, we shall

continue to utilize public resources prudently and with integrity to achieve

rapid development of Lagos State.Let me also thank all workers in our Ministries, Departments and Agencies for

identifying with our vision and working very hard to help achieve our set

objectives. We have no doubt made considerable success but we are not

where we want to be yet. There is still so much work to do and we cannot

allow complacency to set in. As we move forward, we will intensify the

ongoing public sector reforms to enable better and more efficient delivery of

quality services to the public with transparency, integrity and accountability. I

urge all our workers to embrace the spirit of change and constantly improve

on our skills, attitudes and values in the public interest.I am grateful to all the Honorable members of this House for your support,

patience and cooperation. I thank the leadership and teeming members of the

Action Congress and our Royal Fathers for your unflinching support for your

government. And I am eternally grateful to the people of Lagos State for the

opportunity and privilege to serve. I can assure you that we will intensify the

pace of our work in the days ahead to improve and add value to your lives.

For us, the reward of hard work is more work.


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Your support, co-operation and belief have been our strength and inspiration

to continue. Because memories may fade, I think it is important to go back a

little bit and remind all of us the difficult roads we have successfully worked

together, as hindsight for what we can achieve together in the next and

coming years.In September of 2007, we were compelled to shut down one section of the

bridge linking Mile 12 to Ikorodu to enable us rebuild it so that it will not

collapse suddenly and take innocent lives. Although it caused discomfort, we

finished it before Christmas of 2007 as we promised you and it has continued

to serve our people better and safer.We collaborated together to build part of Lekki-Epe Express way and

Adetokunbo Ademola Street. While you endured the discomfort of the

construction period, we did our best to work at night while we managed the

traffic during the day.Today, both roads have been completed; Lagos now has them delivered to

the highest possible quality and the pain has been replaced with the pleasure

of driving.

On the 2nd of August this year, we had to take the painful but necessarydecision to partially close the 3rd Mainland Bridge and promised to complete

the rehabilitation works in partnership with the Federal Government. You

agreed to endure the discomfort; we kept our promise and delivered ahead of

the deadline. Today, we have a safer bridge and the pain is gone. Last year in December, Tejuoso market was unfortunately gutted by fire. We

were advised to evacuate the whole market to avoid the disaster and possible

loss of life that may follow a sudden collapse.

You agreed to work with us, and today, two markets, the old burnt section and

the recently burnt one are simultaneously being rebuilt. Very soon we will be

getting two brand new markets that are modern, safer and will be a pride to

our state.


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On September 21, 2008, with your cooperation, we walked an uncharted

technological highway together. We achieved the first controlled demolition of

a partially collapsed high rise building in Sub-Saharan Africa. Giving the go

ahead for the final countdown of ten seconds for the building to be

demolished has so far been the most testing decision I have probably had tomake. I found the courage in your support and belief. I will never take them for

granted.There are more challenging roads ahead that we must walk together if we

must achieve the Lagos of our dreams.I will be there at all times you look for me, never letting you down, giving my

best at all times to deliver on your hopes and aspirations and I hope that every

time I look behind me, I will find you there, because I can only lead, if I am

being followed by all of you.When we started last year, some people complained that we were in a hurry,

that we were running a marathon of four years like a sprint. I am happy and

proud first to say that we did so. The global credit crunch reinforces my view

that we were right in our strategy because the opportunities are dwindling, the

price of oil is coming down but we have invested wisely in infrastructure and

the gains will be enduring.The size of our challenges has outgrown our traditional sources of revenue.

We cannot use the same tools to get new results. We will expect more

cooperation from all taxable persons, artisans, professionals and corporations

who are liable to pay taxes to us to do so promptly and voluntarily. Because of

the dwindling prices of oil, the National benchmark for the Federal budget has

been reduced from $52.00 to $45.00 in the 2009 budget. Although we have

kept almost the same size of budget, our expected revenues from the federal

purse have significantly diminished. We believe that with prompt and full

payment of taxes by all taxable adults, we can bridge this funding gap.

However, we must continue to sprint through this marathon, to cross the

Rubicon, before the door of opportunities close in a possible global recession.


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twinkling of an eye. We have seen millions lose their life investments and

plunged into economic despair. And we are seeing in several countries the

ability of strong and determined leadership to offer hope in times of despair; to

give people a reason and a purpose for living when all seems lost. Indeed so

critical is leadership that the whole world keenly followed the energy, passion,time and resources that Americans invested in the rigorous process of

electing their new President.More than ever before, the world needs leaders who will lead with

compassion, courage, wisdom and intelligence; leaders who can see

tomorrow today and take proactive steps to save their people from future

dangers; leaders who can inspire their people to strive for the best that lies

within them in spite of daunting odds. In particular, countries like ours, with somuch potential begging for fulfillment requires leadership of the highest

quality. It is that committed, honest, creative, sacrificial, courageous and

audacious leadership that our Administration promises Lagosians as we

continue on our collective journey to actualizing the clean, beautiful, secure

and prosperous Lagos of our dreams.

Thank you. God bless you.Long live Lagos State.Long live Nigeria.Eko O Ni Baje!

lasg 2009 budget

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